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SCR300 2018
SDG Commitment Report
empowers investors to move from
negative screening to impact investing
1. Corporate communication on the SDGs is increasing
2. The SDG brand is growing in visibility
3. Urgency is developing around some of the SDGs
Pursuing the Sustainable Development
Goals (SDGs) and harvesting the fruits of
fundamental corporate change
Nearly 75% of the largest 400 global cor-
porations disclose non-financial informa-
tion on the United Nations Sustainable
Development Goals as part of their legal-
ly-binding annual financial report. Thus, it
seems fair to conclude that the SDGs will
become the globally accepted strategic
roadmap by listed companies. A curated
analysis of these data allows for specific,
high-scale SDG impact investment.
In 2017, the SCR300, a portfolio based on
the SDG commitment of large global
corporations has already demonstrated
competitive performance compared to
other approaches. Preliminary data on
2018 display that competitiveness
remains in bearish markets because the
proprietary UNGSII data are not yet
priced in by the markets.
Focusing on the SDGs provides investors
with a truly global approach because the
framework was developed and accepted
by 193 UN member countries to be im-
plemented by 2030. The analysis reveals
that the SDG commitment on different
continents shows varying levels of
maturity. The combination of fundamen-
tal investment criteria and SDG
commitment as released in annual
financial reports and checked for
consistency with the help of curated
global media and analyst results in a
novel investment approach that allows
large-scale impact investing.
1
0%
20%
40%
60%
80%
100%
2017 2018 2017 2018 2017 2018 2017 2018
Africa Asia Europe NorthAmerica
Overall share of the visibility of SDGs by origin of company
Excellent Good Fair
60%
65%
70%
75%
80%
2017 2018
% of companies focusing on the SDGs*
* Annual reports filed in 2017/2018
UNGSII & ESG rankings and indices help
move markets by empowering profits
The Problem until 2017:
Only 30-60% of a company’s value is
disclosed in their annual report according
to Professor Eccles of Harvard Business
School and PWC. On top of this, the
inability to also compare non-financial
performance as part of a consistent
analysis framework is missing for global
investors. Over time, this has led to poor
investment decisions that have repeatedly
resulted in financial crises. The last one,
in 2008, caused a major trust meltdown,
due to poor governance and a lack of
standards.
The Solution:
193 heads of state decided the SDGs
should become the new gold-standard for
all stakeholders by 2030. The UNGSII
Foundation creates unique transparency
on the progress of both countries and
companies. Leading rating agencies like
OEKOM prove that investing in compa-
nies with a track record in sustainable
behavior (ESG) creates added value (see
Trend 1). Combining UNGSII’s curated
analysis of global corporate commitment
to the SDGs with due diligence on ESG
performance helps investors make better
informed decisions about the financial and
social impact of their investments. Trend 2
indicates that financial markets embrace
this concept.
Trend 3's review of today's management
being fired for lack of ethical commitment
could transition into a review of
tomorrow's CEOs being fired for their lack
of commitment to the SDGs.
equally weighted
Trend 1: Performance of the ESG-based OEKOM Prime Portfolio
Trend 2: Visibility of quoted financial analyst statements on ESG
Source: Oekom research 2017, Media Tenor 2017, Strategy, & manager magazin
Trend 3: Share of fired CEOs that lost their jobs because of ethical issues
3
4
This Sustainable Development Goals
Commitment Report (SCR) is based on
All 405,249 statements
in 400 annual reports
issued by these large
corporations in 2017 &
2018 were categorized
by human analysts.
All 2,122,430 reports
on these 400 companies
from Jan 2001 – June
2018 in international
business print media
(e.g., FT, WSJ,
Handelsblatt, etc.) were
analyzed.
All 1,105,042 quotes
from Jan 2001 – June
2018 by financial
analysts in international
business print media on
these 400 stocks and
more were analyzed.
400 of the world’s largest companies with a
combined market cap of more than 25 trillion USD
out of which 300 disclose commitment to the SDGs
Methodology & benefits of UNGSII
rankings: Creating transparency on the
SDG-related disclosures of companies
UNGSII
Accelerating the financial impact of the
SDGs
Creating transparency for investors, customers,
and civil society
Supporting informed decisions
Enhancing the
relevance of corporate reporting
Helping businesses to manage
their reputation
SDG/ESG
• UNGSII analysts read and categorize the annual reports of companies and central banks according to direct and indirect references to the SDGs
Media Impact
• Analysis of business media and how they report on these companies
• Direct/indirect references
• Compare journalists/other stakeholders vs. analysts
Analysts Impact
• Analysis of analyst quotations in key financial publications (WSJ, FT, etc.).
• Perception of financial and non-financial value drivers
Performance
• Stock prices
• Bond prices
• Sales
• Net Pro Score ™
• Employer rankings
5
The UNGSII SCR300 has shown in its
2017 performance a rate of return of
27.63%, more than three points higher
than its closest competitor. This highlights
that responsible, socially conscious
business is also profitable business,
providing unique opportunities to support
progress on the SDGs while making an
investment profit. Because responsibility
and sustainability improvements are
always possible for all companies, the
multiple data sources and regularly
updated natured of the UNSGII SCR300
means its companies are at the forefront
of the business and investing advantage
offered by supporting the SDGs. And as
these companies are now known for their
concrete commitment towards specific
SDG’s, Pension Funds, Family Offices
and others can move from negative
screening to positive, long term SDG
impact investments.
UNGSII SCR300 outperforms comparable
market benchmarks
5 For illustrative purposes only. See important disclosures.
CEOs and chairmen around the world
recognize the importance of the SDGs
Not all companies mention their
commitment to the SDGs in the parts of
their annual report dedicated to direct
communication from their leadership to
stakeholders. Those companies that
prioritized this type of communication
were not always those with the highest
volume of statement on the SDGs.
However, associating the SDGs with the
C-suite shows a considerable
commitment that has high value in
communications and media activities. This
suggests these companies are likely to
continue to grow their SDG commitments
and are worthy of particular attention from
investors.
0 20 40 60 80 100 120 140 160 180 200
Bristol Myers Squibb
International Paper
National Grid
Salesforce
Westpac Banking
Berkeley Group
Cigna
Standard Bank
Cargill
JP Morgan
Visibility of the SDGs in statements from C-level executives, 2018
0%
10%
20%
30%
40%
50%
60%
NorthAmerica
WesternEurope
Worldwide BRICS
2007-2011 2012-2016
Share of fired CEOs that lost
their jobs because of ethical
issues
6
Climate action remains by far the most
visible of the SDGs. This is due to a
combination of factors, including legal
requirements in some regions to report on
greenhouse gas production and control.
The visibility of climate action also show-
cases the urgency of this topic and
reflected consumer expectations that
companies behave responsibly when it
comes to their impact on the environment.
Regional differences related to the
acceptance of climate change as a crisis
are, however, a factor. While some
industries address this topic more than
others because of persistent concerns
regarding their impact on the environment
– i.e., automakers, energy producers, and
oil and gas companies – this topic was
visible across all industries. Responsible
consumption, good health, and decent
works are ranked nearby. Growth was
visible for most SDGs 2017 to 2018. A
few SDGs have extremely limited visibility,
showcasing opportunity for companies.
0 2000 4000 6000 8000
Life under water (14)
End poverty (1)
End hunger (2)
Partnerships (17)
Life on land (15)
Reduce inequalities (10)
Innovation (9)
SDG in general
Quality education (4)
Water & sanitation (6)
Sustainable energy (7)
Gender equality (5)
Good health (3)
Peace & justice (16)
Sustainable cities (11)
Responsible consumption (12)
Decent work (8)
Climate action (13)
2017*
Number of statements
Climate action remains dominant –
Responsible Consumption follows
7
0 2000 4000 6000 8000
Life under water (14)
End poverty (1)
End hunger (2)
SDG in general
Reduce inequalities (10)
Life on land (15)
Partnerships (17)
Innovation (9)
Water & sanitation (6)
Quality education (4)
Gender equality (5)
Sustainable energy (7)
Sustainable cities (11)
Peace & justice (16)
Decent work (8)
Good health (3)
Responsible consumption (12)
Climate action (13)
2018*
Number of statements
* Annual reports filed in 2017/2018
0 250 500 750
Asml
Denso
Reliance Industries
JP Morgan
Randstad
H & M
Deutsche Telekom
Akzo Nobel
BBVA
Vivendi
Number of statements
European companies lead on the most
visible SDGs – Decent Work, Responsible
Consumption, and Climate Action
Overall visibility of SDG-related coverage
As previously noted, the SDGs focusing
on Decent Work (8), Responsible
Consumption (12), and Climate Action
(13) were some of the most visible across
all annual reports in both 2017 and 2018.
Vivendi dominated on Decent Work, but
was also strongly visible on Responsible
Consumption.
Meanwhile, Danone focused on
responsible consumption in the food
industry, focusing on reducing waste in
packaging as well as in their supply and
consumption chain. This also was
reflected in their strong performance on
Climate Action.
American companies were largely absent
from the top ten on all three of these
topics and performed particularly poorly
on Climate Action.
This was due to a range of issues,
including a growing trend in the U.S. to
only file a Form 10-K and not a magazine-
style annual report and political
controversy about the reality of climate
change.
U.S. companies were more likely to focus
on SDGs like Good Health (3), Education
(4), and Gender Equality (5).
0 250 500 750
Glencore
BBVA
Legrand
Akzo Nobel
Alcoa
Swatch
Total
AXA
Valeo
Danone
Number of statements
8
0 250 500 750
Taiwan SemiconductorClorox
China CiticVivendi
SainsburyLegrand
Akzo NobelSwatch
ValeoDanone
2018*
Number of statements
* Annual reports filed in 2018
Media coverage confirms the concrete
disclosure by companies on the SDGs
Media Tenor’s media sentiment data can
serve as a control system. It allows
investors to see if companies are
accurately representing their commit-
ments to the SDGs. Additionally, media
sentiment data can help identify
companies that are deeply committed to
the SDGs but are not yet able to convey
this information effectively to the media.
Companies that are strongly visible on the
SDGs in their annual reports tend to
receive high shares of positivity in the
media. If companies stress SDGs in their
annual reports and the media sees a gap
between promise and reality, companies
are likely to attract adverse publicity with
subsequent negative reaction from
stakeholders such as investors dropping
the share and consumers walking away.
Visibility and tonality – in general and
associated with the SDGs specifically –
can help drive share prices up and down.
This can be an important tool in predicting
price fluctuations over a range of time
intervals. Companies with a consistent
high reputation on social development
issues tend to benefit from lower
borrowing costs and better scores in
employee rankings. We have given each
analyzed company a score from 1 – 100,
which showcases not just the visibility of
the SDGs, but the diversity of SDGs
mentioned and the media image of
companies related to these topics.
0 500 1000 1500 2000
Swatch
Deutsche Telekom
Pfizer
Reliance Industries
Akzo Nobel
Vivendi
BBVA
Danone
Legrand
Valeo
Most visible companies on the SDGs in annual reports
Number of statements
0% 50% 100%
Swatch
Deutsche Telekom
Pfizer
Reliance Industries
Akzo Nobel
Vivendi
BBVA
Danone
Legrand
Valeo
Share of positivity on TV news and in business print media
Share of positivity in the media
9
2017 / 2018
Similar to the impact of overall media
tone, Media Tenor media sentiment data
can also look at the tone of statements
from financial analysts quoted by the
media. This does not capture overall
analyst sentiment, but it does capture the
overall analyst sentiment as portrayed
In the media. This expert opinion also has
the ability to move the market and thus
allows investors to anticipate stock market
activity. Additionally, it can help
companies ascertain which analysts can
help them achieve media visibility based
on quotation frequency and themes.
Quoted financial analysts agree overall
on company commitment
0% 20% 40% 60% 80% 100%120%
Swatch
Deutsche Telekom
Pfizer
Reliance Industries
Akzo Nobel
Vivendi
BBVA
Danone
Legrand
Valeo
Share of positivity from quoted financial analysts
Share of positivity from quoted financial analysts
no positive statements
no positive statements
no positive statements
10
0 500 1000 1500 2000
Swatch
Deutsche Telekom
Pfizer
Reliance Industries
Akzo Nobel
Vivendi
BBVA
Danone
Legrand
Valeo
Most visible companies on the SDGs in annual reports
Number of statements
2017 / 2018
While in 2000 only 5% of quoted financial
analyst statements on SCR300
companies focused on issues related to
SDG/ESG activities in general, this went
up to almost every seventh quote when
they explained why they recommended
buying or selling a stock .
On the other hand, most companies on
the SCR300 have not been the subject of
quoted financial analyst statements on
their SDG and CSR activities. This
mismatch has important implications for
investors.
For some SCR300 companies a lack of
visibility on SDG/CSR activity in
statements from quoted financial analysts
may indicate a weakness in corporate
communications. For others, it may
indicate skepticism or market events that
contrast with company statements on the
SDGs.
However, those companies which are
visible in quoted financial analyst
statements on these activities – and
receive positive tonality – clearly rise
above their peers in SCR300 scoring.
14%
Share of quotedanalyst statementsabout SCR300companiesfocusing onSDG/CSR topics
Share of quotedanalyst statementsabout SCR300companies on allother topics
38.3%
Share of SCR300companies thathave quotedanalysts commenton their SDG/CSRactivity
All othercompanies
However, SCR300 companies are not yet
communicating effectively on the SDGs
to analysts
Share of quoted analyst statements
regarding SCR300 on SDGs/CSR Share of SCR300 companies with SDG/CSR
visibility in quoted analyst statements
Share of statements Share of companies
11
2017
2018
29%
2017
2018
13%
21 SCR300 companies are strongly
recognized on the SDGs/CSR by quoted
financial analysts
The mix of regional focus shows that
companies that excel can overcome
regional biases that make visibility on
CSR topics challenging in some markets.
Responsible, sustainable corporate
activities aren’t just better for society, but
are ultimately the most profitable.
The U.S., for example, lags behind
because of skepticism on widely accepted
issues like climate change. This has
resulted in lower attention from U.S.
analysts on for SDGs and CSR topics.
The 21 companies below are members of
the SCR300 that received only positive and
neutral coverage on their SDGs/CSR
activities.
These companies have been effective in
spreading their message on the SDGs
beyond their annual reports and are
capable of reaching new audiences
regarding their sustainability commitment.
These companies represent a range of
locations and industries; those in Europe
were the most successful in this regard.
Coverage tone for SCR300 companies
with positivity on SDGs/CSR from quoted financial analysts
12
0% 10% 20% 30% 40% 50% 60% 70% 80%
Johnson & JohnsonBest Buy
adidasAdobe
Walt DisneyAmazonCostcoNVIDIA
Goldman SachsDaimlerAllianz
FacebookNintendo
JP MorganSonySAPAudiIntuit
FedexRenault
Tone of coverage
2017 / 2018
Fund Concept: SDG 1 best performers -
No Poverty
13
0 5 10 15 20 25 30 35
Vale
Legrand
Reliance Industries
Asml
Sinopec
Overall
0 1 2 3
HP
JM Smucker
Mondelez
21st Century Fox
Blackrock
Cigna
Americas
0 5 10 15
Nestle
RELX Group
Vivendi
Legrand
Asml
Europe
0 10 20 30 40
Mizuho
Taiwan Semiconductor
Reliance Industries
Sinopec
Asia Pacific
0 1 2 3
Remgro
Africa
2018*
* Annual reports filed in 2018
Fund concept: SDG 2 best performers -
Zero Hunger
14
0 10 20 30 40 50 60 70
British American Tobacco
Heineken
Unilever
Reliance Industries
Shoprite
Overall
0 5 10 15 20 25 30
General Mills
JM Smucker
Canadian National Railroad
Publix
Cargill
Americas
0 10 20 30 40
Nestle
RELX
Daimler
Bayer
Heineken
Unilever
Europe
0 20 40 60
WH Group
China Citic
Mizuho
ITC
Reliance Industries
Asia Pacific
0 20 40 60
Shoprite
Africa
2018*
* Annual reports filed in 2018
Fund concept: SDG 3 best performers –
Good Health
15
0 100 200 300 400 500 600
Legrand
BCE
Cigna
Reliance Industries
Pfizer
Overall
0 5 10 15 20 25 30
Wells Fargo
Centene
Cargill
BB & T
Cognizant
Americas
0 20 40 60 80 100
Sainsbury
Danone
Valeo
Unilever
Legrand
Europe
0 50 100 150 200 250 300
Sinopec
Wilmar International
China Citic
Tata Steel
Reliance Industries
Asia Pacific
0 10 20 30 40
Standard Bank
Remgro
Shoprite
Africa
2018*
* Annual reports filed in 2018
Fund concept: SDG 4 best performers –
Quality Education
16
0 20 40 60 80 100 120 140 160
China Citic
Vivendi
Asml
BBVA
Reliance Industries
Overall
0 5 10 15 20 25 30
Wells Fargo
Centene
Cargill
BB & T
Cognizant
Americas
0 20 40 60 80
Bayer
Valeo
Vivendi
Asml
BBVA
Europe
0 50 100 150
Wilmar International
Taiwan Semiconductor
Tata Steel
China Citic
Reliance Industries
Asia Pacific
0 10 20 30
Standard Bank
Remgro
Naspers
Shoprite
Africa
2018*
* Annual reports filed in 2018
Fund concept: SDG 5 best performers –
Gender Equality
0 50 100 150 200
AXA
Unilever
Vivendi
Valeo
Legrand
Overall
0 20 40 60
Blackrock
Cigna
Clorox
Wells Fargo
Philip Morris
State Street
Pfizer
Americas
0 50 100 150 200
AXA
Unilever
Vivendi
Valeo
Legrand
Europe
0 20 40 60 80
Infosys
Wilmar International
Canon
Denso
Reliance Industries
Asia Pacific
0 5 10 15 20 25
Standard Bank
Shoprite
Remgro
Africa
17
2018*
* Annual reports filed in 2018
Slightly more than one third of the
SCR300 address gender equality (SDG
5). While over half of the African and
European companies in the SCR300 have
offered statements about gender equality,
less than 20% of the companies in the
Americas have, suggesting major cultural
differences and opportunities for
companies to gain an edge over peers
that are not yet engaged on this topic.
SCR300 companies vary widely on
gender equality by region
-10% 0% 10% 20% 30% 40% 50% 60%
Americas
Asia
Africa
Europe
Share of SCR300 companies that address gender equality
Since women are half the population, they
also represent half of any company’s
potential work force and half of any
company’s potential customers. Working
towards gender equality, therefore, has
clear benefits to all stakeholders of all
companies. As such, equality can improve
efficiency, the corporate environment,
demand for products, and, of course,
society at large.
18
2018
0 5 10 15 20 25 30 35
Apple
Cisco
Microsoft
Intel
SAP
Technology company visibility on gender equality
Number of statements
There has been wide-spread publicity on
sexism in tech companies in 2017 and
2018. This media coverage has included
accounts of pay disparities, lack of
promotions, and sexual harassment at
specific companies, as well as industry-
wide concern that women are not
interested in working in technology
environments because of workplace
culture. In addition, the ongoing
“GamerGate” controversy has served to
drive women out of video game-related
spaces as both employees and hobbyists.
Silicon Valley remains conspicuously
absent on gender equality
In light of these problems, IT companies with
a strong commitment to the SDGs have an
opportunity to differentiate themselves,
highlight how they are addressing these
industry-wide concerns, and make it clear to
all stakeholders that they are committed to
selecting from a large and diverse talent
pool. Only one tech company – SAP – was
visible on gender equality at all. Those
companies that have not yet addressed
gender equality in their annual reports, may
wish to prioritize this in order to acknowledge
concerns and boost investor confidence.
19
No s
tate
ments
2018
-100% -50% 0% 50%
Entertainment
Media
Retail
Airlines/railways
Financial services
Electric engineering/IT
Banks
Consulting/accounting
Car industry
Hotels/restaurants
Media coverage tone on gender equality and discrimination 2016-18
Negative Positive
The analysis of opinion-leading global
media between 2016 and 2018
demonstrates the level of reputational
risks linked with various sectors when it
comes to gender equality. The Weinstein
case has been the trigger behind the
strong coverage on media companies.
However, other media organizations like
NBC and the BBC have also come into
the spotlight. The same has held true for
the entertainment business. The
technology sector has been frequently
confronted with discrimination and abuse
of power in recent months as well.
Lack of gender equality marks a key
reputational threat to many sectors
Looking at individual media tone scores of
some of the largest technology companies
underscores the problem: Google had a
rating of -37 (balance of positive/negative
coverage tone as a percentage), Amazon of -
81, and Uber of -73 to name just a few. The
significant decline in company value following
the controversy about Uber’s founding CEO
Kalanick and his subsequent ousting might
serve as a warning to all investors. Other
industries have put emphasis on the
promotion of women in board and
management positions and have garnered
favorable coverage.
20
0% 10% 20% 30% 40%
Hotels/restaurants
Car industry
Financial services
Retail
Airlines/railways
Consulting/accounting
Banks
Electric engineering/IT
Entertainment
Media
Reports regarding gender equality and discrimination by industry 2016-18
Share of coverage
Drilling deeper into the global media
coverage data on gender equality for
2016 - 2018, we find a number of
companies that were negatively framed
on a variety of issues. The Weinstein
scandal that resulted in the #metoo
campaign trending on Twitter in late 2017
was the most visible issue. However, rape
and sexual harassment are extreme
results of inequality, especially when it
comes to power and influence. Important
earlier discussions comprised a lack of
Not many role models on gender equality
identified yet
efforts in companies to create equal
opportunities for men and women to reach
top positions and to reduce the pay gap
which still exists in many organizations. The
media analysis also revealed some
companies and organizations that achieved
favorable acknowledgement of their activities
on gender equality, like Siemens, BHP, Erste
Bank, Deutsche Telekom, Adidas, IBM, and
SAP. However, the issue seems to be still an
emerging one as the number of positive
reports has been rather low.
21
Weinstein,
Google, BBC, NBC,
Amazon, Wynn Resorts,
CBS, Pixar, Fidelity,
Netflix, Nike, Saatchi &
Saatchi, Signet, Twitter
Siemens, Deutsche
Telekom, NYSE, Adidas,
BHP, Erste Bank, IBM,
Deutsche Bahn,
McDonald’s, SAP
Companies with primarily negative (red) / positive (green) international media coverage
on gender equality, (non) discrimination, promotion of women, sexual harassment
Fund concept: SDG 6 best performers –
Clean Water
22
0 50 100 150 200
Clorox
Reliance Industries
Total
Heineken
Valeo
Overall
0 20 40 60 80
HP
JBS
Bank of America
Pfizer
Clorox
Americas
0 50 100 150 200
Bayer
Legrand
Total SA
Heineken
Valeo
Europe
0 20 40 60 80
Denso
Taiwan Semiconductor
Tata Steel
China Citic
Reliance Industries
Asia Pacific
No visibility for SDG
6 in analyzed
African companies
2018*
* Annual reports filed in 2018
Fund concept: SDG 7 best performers –
Affordable Energy
23
0 100 200 300 400 500
Volvo
Total
Hermes
Valeo
Legrand
Overall
0 10 20 30 40
Boeing
Bank of America
JBS
Bimbo
Clorox
Americas
0 100 200 300 400 500
Volvo
Total
Hermes
Valeo
Legrand
Europe
0 20 40 60 80
Mizuho Financial
Reliance Industries
Tata Steel
Taiwan Semiconductor
China Citic
Asia Pacific
0 1 2 3
Shoprite
Africa
2018*
* Annual reports filed in 2018
Fund concept: SDG 8 best performers –
Decent Work
24
0 50 100 150 200 250 300 350 400
H & M
Deutsche Telekom
Akzo Nobel
BBVA
Vivendi
Overall
0 10 20 30 40 50 60
Cisco
Philip Morris
Delta
Bank of America
JP Morgan
Americas
0 10 20 30 40 50
China Citic
Mizuho Financial
Wilmar International
Denso Corp
Reliance Industries
Asia Pacific
0 5 10 15 20 25 30
Remgro
Shoprite
Standard Bank
Africa
0 100 200 300 400
H & M
Deutsche Telekom
Akzo Nobel
BBVA
Vivendi
Europe
2018*
* Annual reports filed in 2018
Fund concept: SDG 9 best performers –
Industry and Innovation
25
0 20 40 60 80 100 120 140 160
Reliance Industries
Asml
Legrand
Valeo
Deutsche Telekom
Overall
0 5 10 15 20
Cisco Systems
Boeing
Visa
Microsoft
Pfizer
JP Morgan
Americas
0 50 100 150
VW
Atlas Copco
Asml
Legrand
Valeo
Europe
0 10 20 30 40 50 60
Japan Tobacco
Tata Steel
Alibaba
Mizuho Financial
China Citic
Reliance Industries
Asia Pacific
0 1 2
Standard Bank
Africa
2018*
* Annual reports filed in 2018
Fund concept: SDG 10 best performers –
Reduced Inequalities
26
0 10 20 30 40 50 60 70
AXA
Randstad
Remgro
Vivendi
Deutsche Telekom
Overall
0 5 10 15 20
Fannie Mae
IBM
Blackrock
Nike
Enbridge
BB & T
Americas
0 20 40 60 80
SAP
AXA
Randstad
Vivendi
Deutsche Telekom
Europe
0 5 10 15
China Citic
China Mobile
Reliance Industries
Asia Pacific
0 10 20 30 40 50
Remgro
Africa
2018*
* Annual reports filed in 2018
Fund concept: SDG 11 best performers –
Sustainable Communities
27
0 50 100 150 200 250
Parmalat
Heineken
Akzo Nobel
BBVA
Vivendi
Overall
0 20 40 60 80
Nationwide Insurance
US Bancorp
Firstgroup
JP Morgan
Allstate
Americas
0 50 100 150 200 250
Parmalat
Heineken
Akzo Nobel
BBVA
Vivendi
Europe
0 20 40 60 80
Nissan
Wilmar International
Canon
Tata Steel
Denso
Reliance Industries
Asia Pacific
0 5 10 15
Naspers
Standard Bank
Africa
2018*
* Annual reports filed in 2018
Fund concept: SDG 12 best performers –
Responsible Consumption
28
0 100 200 300 400 500
Legrand
Akzo Nobel
Swatch
Valeo
Danone
Overall
0 20 40 60 80 100 120
Ecolab
Pfizer
JBS
Alcoa
Clorox
Americas
0 100 200 300 400 500
Legrand
Akzo Nobel
Swatch
Valeo
Danone
Europe
0 50 100 150
Canon
Tata Steel
Denso
Taiwan Semiconductor
China Citic
Asia Pacific
0 10 20 30 40 50
Shoprite
Africa
2018*
* Annual reports filed in 2018
Fund concept: SDG 13 best performers –
Climate Action
29
0 200 400 600 800
Swatch
Total
AXA
Valeo
Danone
Overall
0 50 100 150 200 250
American Airlines
Bimbo
JBS
Firstgroup
Alcoa
Americas
0 200 400 600 800
Swatch
Total
AXA
Valeo
Danone
Europe
0 20 40 60 80 100 120
China Citic
Panasonic
Denso
Tata Steel
Taiwan Semiconductor
Asia Pacific
0 10 20 30 40
Standard Bank
Naspers
Remgro
Shoprite
Africa
2018*
* Annual reports filed in 2018
Fund concept: SDG 14 best performers –
Life Below Water
30
0 5 10 15 20 25
Akzo Nobel
Danone
Adidas
Sainsbury
Swatch
Overall
0 1 2 3
Cargill
Americas
0 5 10 15 20 25
Akzo Nobel
Danone
Adidas
Sainsbury
Swatch
Europe
0 1 2 3
Reliance Industries
Asia Pacific
No visibility for SDG
14 in analyzed
African companies
2018*
* Annual reports filed in 2018
Fund concept: SDG 15 best performers –
Life on Land
31
0 20 40 60 80 100 120
BNP Paribas
Samsung Heavy Industries
Total
Inditex
Electricite de France
Overall
0 2 4 6 8 10
Bimbo
Bank Of Montreal
Colgate-Palmolive
TJX
Cargill
International Paper
Americas
0 20 40 60 80 100
Vinci
Valeo
Legrand
Total
Danone
Europe
0 10 20 30 40 50
Denso
China Citic
Canon
Tata Steel
Reliance Industries
Asia Pacific
No visibility for SDG
15 in analyzed
African companies
2018*
* Annual reports filed in 2018
Fund concept: SDG 16 best performers –
Peace and Justice
32
0 50 100 150 200 250 300 350 400
Danone
Infosys
Legrand
Valeo
BBVA
Overall
0 5 10 15 20
Cisco
Blackrock
Salesforce
Philip Morris
BCE
US Bancorp
Americas
0 100 200 300 400
Standard Chartered
Danone
Legrand
Valeo
BBVA
Europe
0 20 40 60 80 100
Reliance Industries
Canon
China Citic
Denso
Infosys
Asia Pacific
0 5 10 15 20 25 30
Remgro
Shoprite
Standard Bank
Africa
2018*
* Annual reports filed in 2018
While concerns about peace, justice, and
the rule of law are global, SCR300
companies evidence different levels of
commitment on this topic in their annual
report communications. While over half of
the European companies in the SCR300
discuss this issue, barely more than 10%
of the companies in the Americas do,
suggesting very different attitudes about
global crises in general and the most
common global corporate crisis –
corruption – in particular.
As is true throughout the SCR300, a lack
of visibility for an SDG does not mean a
company is not working on addressing it.
However, without communications, those
efforts do not benefit the company and do
not encourage other companies to join in.
Companies in the Americas need to look
to their global peers on this issue and also
be willing to take leadership in their own
region. Current antiregulatory sentiment
may make addressing these topics
challenging.
European focus on peace & justice is
almost four times that of the Americas
0% 10% 20% 30% 40% 50% 60%
Americas
Asia
Africa
Europe
Share of SCR300 companies that address peace & justice
Share of SCR300 companies addressing peace and justice
33
2018
Some companies in the industries most
impacted by charges of fraud and
corruption were extremely active in
communicating on peace & justice. Many
banking companies only offered limited
visibility on this SDG, if they offered any
at all. US and Australian banks, in
particular, were disinclined to discuss the
issue, offering only a handful of
statements on the subject and leaving a
significant image opportunity on the table.
Car companies, which have suffered
recently on emissions-related scandals,
also avoided discussing justice issues. Of
the car companies in the SCR300, only
Daimler and two components companies
addressed this SDG at all. This was not
enough to counter the ongoing reports on
fraud issues in the industry. Opportunities
remain for car companies to address
stakeholder concerns and seek leadership
on these issues both within the industry
and compared to other industries that also
face risk.
0 10 20 30 40 50
BB & T
Credit Suisse
Westpac
US Bancorp
Standard Bank
China Citic
Banking statements on peace & justice
0 50 100 150 200
Daimler
Denso
Valeo
Car industry statements on peace & justice
Few companies in the industries most
impacted by corruption address peace &
justice (16)
34
2018
Over the last five years, coverage of fraud
and corruption has been strongly visible
across multiple industries. The banking
industry was strongly affected as the trust
meltdown was ongoing and sales
scandals were strongly visible in the
media. The car industry also suffered
amid the emissions scandal. But no
industry was truly immune. Companies in
the SCR300
0 20 40 60 80 100 120 140 160 180 200
LawyersSecurity Industry
Consulting/accountingHotels/restaurants
AdvertisingHealthcare
Aerospace/defenceElectric engineering/IT
Savings banksRetail
Financial servicesEntertainment
Building/constructionInsurance
Mineral oilAirlines/railways
Pharmaceutical industryMedia
Car industryBanks
Negative No clear tone Positive
Volume and tone of coverage fraud/corruption, 2013-2017
international TV News, Industries Top 20
Global media coverage shows that
corruption impacts all industries
35
have the opportunity to frame them-selves
as responsible members of their industry.
This image can help them boost their
position with both investors and
customers and can also help redeem the
overall attitude towards their industry. For
investors, the SCR300 data on SDG16
can offer a way to avoid investing in
companies prone to corruption scandals
and fraud.
0 20 40 60 80
HSBC
Renault Nissan
Willy Selten
Daimler
Vatican Bank
Samsung
Unicredit
Aizoon SL
Adidas
Deutsche Bank
Glaxo Smithkline
News Corporation
Schlecker
Weinstein
BayernLB
Petrobras
BBI Airport
VW
Negative No clear tone Positive
The media multiplies information and
structures awareness of stakeholder
groups. The company most mentioned
with regard to fraud and corruption in
international business media has been
Petrobras from Brazil. In light of the stark
consequences of the corruption scandal
the company writes in its 2016 20-F
financial report: “Our management has
identified material weaknesses in our
internal control over financial reporting,
and has concluded that our internal
control over financial reporting was not
effective at December 31, 2016, which
may have a material adverse result on our
results of operation and financial
condition.” Volkswagen has lacked in
addressing SDG 16 in its annual reports.
0 50 100 150 200 250
Fosun GroupCitigroup
AdidasAirbus Group
BarclaysBTG Pactual
Construtora OdebrechtHSBC
OdebrechtThyssen Krupp AG
JP Morgan ChaseJBS SA
UBSGlaxo Smithkline
SamsungDeutsche Bank
VWSiemens
1MDBPetrobras
Negative No clear tone Positive
Volume and tone of coverage fraud/corruption, 2013-2017
Business media / international TV News, companies Top 20
Petrobras and Volkswagen have been
most exposed to negative news on fraud
and corruption
36
0 2 4 6 8 10 12 14 16 18
Blesa, MiguelLow, Jho
Middelhoff, ThomasMotsoeneng, HlaudiSchettino, Francesco
Shkreli, MartinTshabalala, Ellen
Guo, GuangchangReilly, Mark
Ecclestone, BernieBrown, Arthur J.Esteves, Andre
Brady, TomGrossmann, Jochen
Odebrecht, MarceloWinterkorn, Martin
Batista, JoesleyHayes, Thomas
Lee, Jae-yong (Jay)Dreyfus, Robert-Louis
Negative No clear tone Positive
Sustainable institutions making peace and
justice a key priority on their agendas not
only safeguards the reputation of
companies but also the image of senior
management. The global media play a
pivotal role when it comes to unveiling
fraud and corruption cases. Awareness for
investigative journalism linked to tax
withdrawal has been on the rise
in recent years. For example the content
of the “Panama Papers” and “Paradise
Papers” was shared globally, exposing
senior executives and owners of
businesses to negative news on tax
avoidance, fraud, money laundering, and
other forms of misconduct. Executives are
well advised to promote sustainable
institutions and related ethics.
Volume and tone of coverage fraud/corruption/taxes, 2013-2017
Business media / international TV News, managers Top 20
Senior management exposed to massive
reputational risks on fraud / corruption
claims
37
Fund concept: SDG 17 best performers –
Partnerships for the Goals
38
0 20 40 60 80 100
Wilmar
BBVA
Deutsche Telekom
Pfizer
Akzo Nobel
Overall
0 20 40 60 80
AT & T
BCE
IBM
Nvidia
Cargill
Pfizer
Americas
0 20 40 60 80 100
SAP
Vivendi
BBVA
Deutsche Telekom
Akzo Nobel
Europe
0 10 20 30 40 50
Mizuho Financial
Canon
China Citic
Reliance Industries
Wilmar International
Asia Pacific
No visibility for SDG
17 in analyzed
African companies
2018*
* Annual reports filed in 2018
There are companies communicating
effectively on the SDGs in all regions
0 200 400 600 800 1000
JP Morgan
Ecolab
Bimbo
BCE
Firstgroup
Cigna
JBS
Clorox
Alcoa
Pfizer
Americas
Number of statements
0 500 1000 1500 2000
AXA
Total
Swatch
Deutsche Telekom
Akzo Nobel
Vivendi
BBVA
Danone
Legrand
Valeo
Europe
Number of statements
0 500 1000
Panasonic
ITC
Infosys
Canon
Wilmar International
Denso
Tata Steel
Taiwan Semiconductor
China Citic
Reliance Industries
Asia Pacific
0 50 100 150 200 250
Naspers
Standard Bank
Remgro
Shoprite
Africa
39
2018
0 50 100 150 200
Emirates Airlines
Icelandair
Lufthansa
Airlines
0 100 200 300 400 500
UBS
Glencore
China Citic
Banking
0 1000 2000
Denso
Volvo
Valeo
Cars
0 500 1000 1500 2000
Shoprite
Sainsbury
Danone
Food
0 200 400 600
Talanx
Cigna
AXA
Insurance
0 200 400 600 800 1000
Astrazeneca
Bayer
Pfizer
Pharmaceuticals
0 100 200 300
Infosys
Canon
SAP
Tech
0 200 400 600 800
AT & T
Ericsson
Deutsche Telekom
Telecommunications
Fund concept: Industry leaders
40
2018
Creating a Methodology for Investing in a
Portfolio of Socially Responsible Assets
by Alfred R. Berkeley, Joseph A. Cajigal, and
Conor Platt
Overview
There are numerous philanthropic
financial initiatives. Many fail or become
slowly ineffective. So why is this one
worth your participation?
This initiative began with the signing of
the Sustainable Development Goals
(SDGs) in September 2015 at the United
Nations. The SDGs are ambitious
successors to the Millennium
Development Goals (MDGs) established
in the year 2000. The Millennium
Development Goals were an initial set of
goals that in some part have succeeded,
but in many other areas were inadequate
or poorly defined. Some of the goals were
greatly affected by the financial recession
of 2008, but the recession is not the only
reason that the MDGs were unsuccessful.
The Millennium Development Goals failed
because there was little to no
accountability. Furthermore, there was
close to no transparency into what was
accomplished and what was not
accomplished. Additionally, companies
were able to claim compliance by
purchasing the use of a United Nations
logo without effectively moving toward
sustainability.
The SDGs are the result of serious soul
searching by senior United Nations
officials, heads of states and their
advisers. There was plenty of blame to go
around. Specifically, this new initiative is
designed to fix those roots of failure.
The SCR brings accountability and
transparency to the United Nations’
ambitious Sustainable Development
Goals for 2030. Understanding the
complexities of operating within the United
Nations bureaucracy, senior United
Nations officers and advisors established
a non- profit foundation outside the United
Nations. It is designing a Global
Sustainability Index, and its charter is to
bring positive attention to companies and
countries that are moving toward
genuinely more sustainable businesses
and to create financial instruments that
enable investors to support these
companies. It is known as UNGSII. Here
is our approach:
41
Socially Responsible Investing
Analysis
We analyze a global universe of stocks
looking for high quality sustainable
companies across all sectors and
industries. The global universe that we
use covers about 2500 issuers, and is
updated on a quarterly basis. We use
third-party sources as well as our own
proprietary analysis to make investment
decisions. The assessment of social and
governance as well as the environmental
performance of a company as part of the
investment decision is carried out with the
aid of over 100 social and environmental
criteria, selected specifically for each
industry. We adjust the criteria to keep up
with the latest developments and findings.
As a leader in this type of analysis we
work hard to apply quantitative measures
of what are essentially qualitative topics.
42
Creating a Methodology for Investing in a
Portfolio of Socially Responsible Assets
by Alfred R. Berkeley, Joseph A. Cajigal, and
Conor Platt
Proactive Industry Metrics
We take a “best in practice” approach to
ensure that all sectors and industries are
represented, with higher thresholds for
high carbon and controversial industries.
On an annual basis, we examine the key
sustainability & governance metrics by
industry. We want to ensure that a current
constituent is worthy of further inclusion.
For prospects, we are looking for the
leaders within an industry.
We exclude any companies with severe
violations against the UN Global Compact
Principles or a low score regarding SDG
compatibility of their product portfolio.
The resulting buying universe is a broadly
diversified, global universe against which
to apply our deeper SDG investment
methodology.
Corporate Commitment Analysis
The corporate commitment factor is
provided by UNGSII using leading media
analyst Media Tenor's media sentiment
data as a control system. It allows
investors to see if companies are
accurately representing their
commitments to the SDGs. Additionally,
media sentiment data can help identify
companies that are committed to the
SDGs but not yet able to convey this
information effectively to the media.
Companies that are strongly visible on the
SDGs in their annual reports tend to
receive high shares of support in the
media. If companies stress SDGs in their
annual reports and the media sees a gap
in reality, companies are likely to attract
adverse publicity and subsequent
negative reactions from stakeholders
such as investors selling and consumers
walking away.
UNGSII conducts a detailed analysis of
legally binding statements by the
company incorporating SDG goals into
their business practices and holds them to
account year over year. UNGSII analysts
read and categorize the annual reports of
companies and central banks according to
direct and indirect references to the
43
Creating a Methodology for Investing in a
Portfolio of Socially Responsible Assets
by Alfred R. Berkeley, Joseph A. Cajigal, and
Conor Platt
SDGs. A media Impact study is conducted
analyzing the business media and how
they report on these companies.
Journalists and other corporate
stakeholders’ views are compared to the
views of financial analysts and their
perception of financial and non-financial
value drivers. A corporate assessment
ranking is made.
Financial and Investment Analysis
Financials represent the largest volume of
data, combining publicly available
financial forecast and historical data. We
break financials down into the following
Fundamental components: Growth,
Earnings Revisions and Valuation. We
also employ technical analysis focusing
on Relative Strength, Trend and
Momentum analysis.
We specifically look at the following:
1) Fundamental prospects for growth -
(e.g., returns on invested capital,
sales, and earnings)
2) Incremental changes in earnings -
(e.g., earnings revisions)
3) Valuation -(e.g., measuring earnings,
sales, enterprise value, book value
and free cash flow)
4) Price momentum - (e.g., focusing on
fundamentally driven price changes)
5) Relative Strength - (e.g., evaluating
each stock relative to its peers)
6) Technical trend - (e.g., evaluating
price, liquidity and volatility)
Portfolio Construction
Using a proprietary factor weighted
approach, we rank each company
against the overall universe by
Environmental, Social, and by
Governance strengths and by Financials.
In constructing the portfolio, we are
guided by the work of Henry Markowitz’s
thesis “Portfolio Solution” (1952), by
William Sharpe’s Capital Asset Pricing
Model (1964), by A.G. Becker and by
Gary Brinson et. al. “Determinant of
Portfolio Performance” (1986). We
employ current versions of Modern
Portfolio Theory which provide a
framework for seeking to maximize
returns at a given level of volatility.
44
Creating a Methodology for Investing in a
Portfolio of Socially Responsible Assets
by Alfred R. Berkeley, Joseph A. Cajigal, and
Conor Platt
When constructing the portfolio, the
following key Modern Portfolio Theory
statistics are used:
• Diversification - considering the number
of holdings, security and sector
weightings and country weightings
• Standard Deviation - measuring
volatility or risk
• Upside and the Downside Capture
Ratios - measuring portfolio-
performance relative to a market index
during specific periods
• Beta - measuring an asset’s risk in
relation to the market
• Alpha - predicting incremental return
from the portfolio when the market is
stationary
• R-Squared - calculating the statistical
measure representing the percentage
of the portfolio’s or security’s
movements
• Tracking Error - measuring of the
standard deviation of the difference
between a selected market index and a
portfolio’s quarterly returns
• Information Ratio - measuring of the
risk adjusted return of the portfolio
Our portfolio will usually be comprised of
between 100 - 150 constituents with a
broad exposure to companies classified
by varying style and market capitalization.
45
Creating a Methodology for Investing in a
Portfolio of Socially Responsible Assets
by Alfred R. Berkeley, Joseph A. Cajigal, and
Conor Platt
Final Thoughts
In summary, we are seeking your
participation in this new UNGSII initiative
because it is designed to incentivize
companies to commit to Sustainable
Development while it should earn you a
solid return on your investment. There
are, of course no guarantees of good
financial performance. Our approach is
straightforward: we apply traditional
investment rules to a select universe of
companies that have committed to
Sustainability and implement their
commitment in their business. By pooling
the resources of many investors, we
mean to send a clear message to
companies and governments that major
corporations and world leaders must
commit to sustainable activities and that
the institutional investment community will
invest in companies that commit to doing
the right thing. Sustainable development
is on the cusp of taking off. We need your
help in sending a clear, loud message.
Join us.
46
Creating a Methodology for Investing in a
Portfolio of Socially Responsible Assets
by Alfred R. Berkeley, Joseph A. Cajigal, and
Conor Platt
Contributors
ALFRED R. BERKELEY, III
Al resumed the Chairmanship of the Firm in January 2013, a position previously held from 1996 to 2006. Al was President of NASDAQ Stock Market, Inc. from 1996 until 2000 and was Vice-Chairman until 2003. Prior to returning to Princeton Capital Management, Al was Chairman of Pipeline Financial Group, Inc. Earlier in his career, as a General Partner of Alex. Brown & Sons, Al served as a software analyst where he was designated a First Team All American analyst. He has served as a Director of a number of companies, institutions and non-profit organizations including Safeguard Scientifics, Comshare, Cognos, Webex Communications, ACI Worldwide, Realpage, Edgar Online, The Nature Conservancy, The World Economic Forum USA and Johns Hopkins University among others. Al has also served on a number of government advisory panels: The President’s National Infrastructure Advisory Council, U.S. Department of Homeland Security Committee on Homeland Advisory System, Committees on Scientific Communications and National Security, Monetary Authority of Singapore’s International Advisory Council, among others. He has testified before Congressional committees (Joint Economic Committee, House Homeland Security Committee, and House Permanent Select Committee on Intelligence). Al took his bachelor’s degree from the University of Virginia and his MBA from the Wharton School and served as an officer in the US Air Force and the US Air Force Reserve.
JOSEPH A. CAJIGAL
Joe is the Chief Executive Officer of Princeton Capital Management’ and is responsible for managing equity and balanced portfolios for clients. Previously, Joe was founder of Hudson Canyon Investment Counselors. Previously he was the Executive Officer responsible for the management of Fiduciary Trust Company International’s ("Fiduciary") domestic mutual fund company, its non-U.S. mutual fund company and its registered broker dealer. During his tenure, he served as a member of Fiduciary’s Management committee, Fiduciary’s Executive committee, Division Executive for the Investors Services Division, President of its tax planning and compliance subsidiary and President of its New York Stock Exchange registered broker-dealer. Joe holds a BA degree in Mathematical Economics from St. Peter’s College.
RACHELINE MALTESE
Racheline Maltese works as a researcher at Media Tenor International focusing on the media portrayal of economic and political issues; she has been with the company since 2002. Her academic and professional background includes a journalism degree from The George Washington University and a stint in the Computer Assisted Reporting unit of the Associated Press. In addition to her work with MTI, she is widely published on pop-culture topics, and her work has appeared in media outlets like Salon as well as in academic texts from McFarland. She is based in New York City.
47
Contributors
CONOR PLATT
Conor is the founder and CIO of Confluence Capital Management, which runs a
private all-weather investment partnership, Confluence Capital, LP. Confluence
has been advising Princeton Capital on the development of their sustainable
strategies and portfolio construction. Previously, Conor was the co-founding CEO
and CIO of Etho Capital, a sustainable asset manager with ETF and Index
solutions. Etho Capital was recognized as a FAST Company Innovative
Company in 2016, and its US Focused ETF(ETHO) has been one of the top
performing sustainable ETFs since inception. Previously, he worked at Brown
Brothers Harriman on the Portfolio Strategy team upon earning his MBA from the
Tepper School of Business at Carnegie Mellon University. He was an analyst at
Morgan Stanley in New York after receiving his B.S. in Finance with honors at
Carnegie Mellon University.
ROLAND SCHATZ
Roland Schatz founded InnoVatio Publishing in 1985 and its research institute
Media Tenor International in 1993. For the last 30 years he has been devoted to
implementing social change. In 2008 he launched, together with Prince Ghazi of
Jordan, the C1 One World Dialogue foundation to improve Inter-Faith-Dialogue.
The InnoVatio network of academics, entrepreneurs and media leaders initiated
the Global Sustainability Index. Schatz teaches Constructive Disruption and
Perception Change. He hosts masterclasses on ‘Unlearning Intolerance’ together
with UN Academic Impact. Since 2013 he serves as Senior Advisor to the
Director General at the United Nations in Geneva. He is the founder of the
UNGSII foundation in 2014 to support the implementation of the SDG’s by
creating transparent indices and providing data and know how to leaders from all
sectors of life.
MATTHIAS VOLLBRACHT
Matthias Vollbracht is the Director of Business Research at Media Tenor
International in Vienna/Austria, Managing Director of Awareness Metrics, a
platform for reputation risk and investment signal solutions and Chief Information
Officer of UNGSII foundation. His research focuses on the impact of media on
public opinion, stakeholder groups and the reputation of institutions and
individuals. Furthermore, he explores the influence of media on asset prices and
economic behavior, like investor and consumer confidence. Matthias Vollbracht
has been working for major international clients with focus on reputation
management, agenda-setting, target systems, crisis communication,
management reputation, financial communication, and CSR. He has developed
reputation insurance solutions based on empirical risk assessment. He holds
degree in economics from the University of Mainz and has worked as a business
journalist.
48
Moses Cui Wantian
Doctor of Economics, postdoctoral, professor, doctoral tutor, famous young
scholar ;member of the National Youth Federation. China's first outstanding
management researcher; The Tenth Outstanding Youth of the 13th Liaoning
Province; Director of the Center for Regional Economic Research of Liaoning
University; Deputy director of the China Private Enterprise Research Center of
Renmin University of China; Joint director of the Center for Religion and
Economic Ethics of Renmin University of China; Director of the Center for Faith
and Entrepreneurship Studies at the Minzu University of China. Chairman of
China Software Industry Association; Founder and Director of Bringspring
Technology (300290); Independent Director of Hong yang Energy (600758);
Independent Director of Shengjing Bank (02066); Independent Director of
Yingkou Bank. Founder and Chairman of the Geneva Love Dreams Foundation.
Co-Director of the Christian Literature Research Center of Beijing Normal
University. Committed to promoting value creation value research and business,
public welfare activities, China's chief executive of the SCR300 project.
Huang…
Professor of Economics, Director of the Center of Private Sector Development at
Renmin University, Beijing/ China. President of the Minzu University in Beijing/
China …
Fan Rong
From Shenyang/China. Master of Science, Chartered Certified Accountant.
Assistant to the President of the Bank of East Asia, responsible for financial,
capital, personal wealth management and risk management. She has 8 years of
banking experience. Board member of Beijing Huachuang Ark Company,
Financial Director at Liaoning Agape Foundation, COO at Love Harmony and
Trust Investment Company. Responsible for investment management, financial
management, operations, asset management, risk control. Member of the Board
of Geneva Agape Foundation.
Karl Pilny
Senior Investment Advisor of Geneva Agape Foundation. Professor of Innovation
in Berlin/Germany and PhD on international business law.. A known investment
and Asia expert. Author of a number of bestseller books on Asia, latest “Asia
2030” (2018). Offers for more than twenty years investment advices about China,
Japan, Korea and India. Initiator of capital market investment funds..
49
Partners for Chinese Edition
Christoph Stückelberger (Chinese name Setubo)
Executive Director of Geneva Agape Foundation in Geneva. Founder and
President of the global network on ethics “Globethics.net Foundation”, based in
Geneva/Switzerland. Professor of Ethics at the University of Basel
(emeritus), Visiting Professor of Ethics at Universities in
Moscow Enugu/Nigeria, Minzu University inBeijing/China. He is in Boards of
Ethics Funds, active in FatihInvest, Ethics Advisor for the United Nations Scaling
Up Nutrition Programme (SUN). He largely published on business ethics, finance
ethics, development and environment.
Xu yan
In June 2015, she obtained a master's degree in regional economics from Liaoning
University/China. She is now a Ph.D. candidate in regional economics at the Department
of Economics of Liaoning University. Her main research interests include private
enterprises and regional economic development. Main academic achievements: "Regional
economic policy innovation for 40 years of reform and opening up", "Research on the
development path of new urbanization in Heilongjiang Province".
Wang yi
From 2003 to 2007, he studied finance at Liaoning University/China with a bachelor's
degree in finance. After entering the Northeast University, he studied for a master's
degree in quantitative economics. After graduating in 2010, he worked in the investment
department of Dongfang Securities Co., Ltd., and in 2015, he taught at the Finance
Department of Shenyang University School of Economics. In 2017, he was admitted to the
School of Economics of Liaoning University and studied for a doctorate in regional
economics.
Peter Zhou yongbin
From 2010 to 2014, he studied at Shenyang Aerospace University/China and obtained a
bachelor's degree in management. After graduation, he worked in the human resources
management of Liaoshen Industrial Group for 2 years. He is now a graduate student in
regional economics at the Department of Economics of Liaoning University and is
committed to pursuing a doctorate. His main research direction: night lighting and true
regional economic growth, economic geography etc.
49
Partners for Chinese Edition
50
Companies Analyzed for the SCR300
Africa
MTN Group
Naspers
Remgro
Shoprite
Standard Bank
Steinhoff
Asia Air India
Alibaba
Canon
China Citic Bank
China Electronics
China General
China Mobile
China Vanke
Denso
Hindustan Petroleum
Infosys
ITC
Japan Tobacco
Jardine Matheson
Kirin
Mahindra & Mahindra
Mizuho Financial Group
Nintendo
Nissan Motor
Panasonic
Reliance Industries
Samsung
Shanxi Coking Coal
Sinopec
Sony Corporation
Taiwan Semiconductor
Tata Power
Tata Steel
Trafigura
UltraTech
WH Group
Wilmar International
Europe
ABB Limited
ABN Amro
Accenture
Adidas
Aegon
Airbus
Akzo Nobel
Allianz
AP Moller-Maersk
Asml
Astrazeneca
Atlas Copco
Audi
AXA
Bayer
BBVA
Beiersdorf
Berkeley Holdings
British Airways
British American
Tobacco
Caixabank
Carlsberg
Christian Dior
Coloplast
Credit Suisse
CSL Behring
Daimler
Danone
Deutsche Bank
Deutsche Boerse
Deutsche Lufthansa
Deutsche Post
Deutsche Telekom
E.ON
Electrolux
Enel
Geberit
Generali
Glencore
H & M
Hannover Re
Heineken
Hermes
Icelandair
Infineon
Intesa Sanpaolo
KBC
Kering
L'Oreal
Legrand
Linde
LM Ericcson
London Stock
Exchange
Mars
Munich Re
National Grid
Nestle
Nordea Bank
NXP
Semiconductors
Parmalat
Pernod-Ricard
Peugeot
Praxair
Raiffeisen Bank
Randstad
RELX
Renault
RWE
Sainsbury
Sampo
SAP
Siemens
Standard Chartered
Statoil
Stmicroelectronics
Svenska
Handelsbanken
Swedbank
Swiss Re
Talanx
Telenor
Tesco
Swatch
Total
UBS
Unilever
Valeo
Vinci
Vivendi
Volvo
VW
WPP
ZFS
Oceana
Air New Zealand
Billabong
Macquarie Group
Qantas Airways
Wesfarmers
Westpac
Woolworths
South America
Itau Unibanco
Petrobras
Vale
Middle East
Emirates Airlines
51
Companies Analyzed for the SCR300
North America
21st Century Fox
3M
Abbvie
Adobe
Aetna Inc
Agilent
AIG
Air Canada
Akamai
Alcoa
Allstate
Alphabet
Amazon
America Movil
American Airlines
American Express
Amerisource Bergen
Apple
Applied Materials
Arconic
Arrow Electronics
AT & T
Avnet
Avon
Bank of America
Bank of Montreal
Bank of Nova Scotia
Baxter
BB & T
BCE
Becton Dickinson
Berkshire Hathaway
Best Buy
Bimbo
Biogen Idec
Blackrock
Blackstone
Boeing
Bristol Myers Squibb
Canadian National
Railroad
Capital One
Cardinal Health
Cargill
Carnival
Centene
Chipotle
CIBC
Cigna
Cisco
Clorox
Coca Cola
Cognizant
Colgate-Palmolive
Comcast
Conagra Foods
Costco
CVS Caremark
Danaher
Deere & Co.
Dell
Delta Air Lines
Dole
Ebay
Ecolab
Emerson Electric
Enbridge
Energizer
Equinix
Expedia
Express Scripts
Fannie Mae
Fedex
Firstgroup
Flextronics
Ford
Freddie Mac
Gap
General Electric
General Mills
George Weston
Gildan Activewear
Goldman Sachs
Herbalife
Hershey
Hewlett Packard
Home Depot
Honeywell
Hormel Foods
IBM
Ingersoll Rand
Intel
International Paper
Intuit
JBS
Jet Blue
JM Smucker
Johnson & Johnson
JP Morgan
Keurig
Kimberly Clark
Kraft Foods
Liberty Mutual
Live Nation
Lockheed Martin
Macy's
Mattel
McKesson
Medtronic
Merck & Co.
Microsoft
Molina Healthcare
Mondelez
Monsanto
NASDAQ
Nationwide Insurance
Netflix
Nike
Northrop Grumman
Nvidia
Pepsico
Pfizer
Philip Morris
PNC Financial
Procter & Gamble
Publix
Ralph Lauren
Regions Financial
Restaurant Brands
Salesforce
Sands
Sprint Nextel
Staples
Starbucks
State Street
Symantec
Sysco
Tapestry
Target
TD Ameritrade
Tesla
Texas Instruments
TJX
Tyson Foods
United Continental
United Health Group
United Technologies
UPS
US Bancorp
US Foods Holding
Visa
VMWare
Wal Mart
Walgreen
Walt Disney
Wells Fargo
Whirlpool
Williams Companies
Yum! Brands
Warnings Regarding Financial Returns
The purpose of this booklet is to solicit your
commitment to and involvement in the United
Nations Sustainable Development Goals. We
believe that humanity must create a large
community of interest dedicated to changing
human behavior to live in harmony with this
small planet.
One of the ways you can show your commitment
is to invest in companies that are themselves
operating in sustainable ways. We believe
investment is a powerful tool that can send a
powerful positive message to the corporations the
shares of which we include in our index and a
powerful negative message to the corporations the
shares of which we do not include.
We have developed a unique approach that guides
which shares we include in our index and which
shares we do not include. It is NOT the approach
that investors typically take. Specifically, we
require that the company commitments in its
legally binding regulatory reports to pursuing one
of more of the Sustainable Development Goals.
This limits the universe of available candidates.
For example, in the litigious United States, some
good companies, with strong commitments to the
SDG’s, do not discuss their commitment in their
regulatory filings. They are excluded from our
index.
The conventional wisdom in investing is that
restricting the universe of available investments
will reduce the returns available to investors. That
wisdom may be true, but we believe it is not. We
are making a bet, with your money, that
companies that are committed to sustainable
business practices will produce larger returns than
companies that are not so committed.
Additionally, we have had one year of strong results in
the performance of the index that we constructed during
the year. Please do not assume that we will have
strong results again. Our investment team is very
experienced and wise from being humbled by the
market again and again. Past results are no assurance
of future results. This index is relatively new and
unproven. It is therefore risky.
Some of this material has been prepared by Princeton
Capital Management, LLC (“PrinCap”). This document
is for information and illustrative purposes only and
does not purport to show actual results. It is not, and
should not be regarded as investment advice or as a
recommendation regarding any particular security or
course of action, nor any attempt to solicit investment
services in any jurisdiction where such offering has not
been registered.
The UNGSII strategy performance figures set forth are
hypothetical or simulated. As such, such figures do not
represent actual trading, are not necessarily indicative
of future results, have certain limitations and may not
reflect the impact that material economic and market
factors might have had on UNGSII results if PrinCap
were actually managing clients’ money. For example,
such results may have under‐ or over‐compensated for
the impact, if any, of material economic and market
factors, such as lack of liquidity.
In addition, such figures are time‐weighted and
annualized, include realized and unrealized gains and
losses and are gross and not net of management fees
or commission charges.
No guarantee is made that the UNGSII Strategy will be
successful; no representation is made that the UNGSII
Strategy will or is likely to achieve the results set forth
above; and investors should be aware that past
performance, and simulated performance in particular,
is no guarantee of future results. An investment based
upon the UNGSII is speculative and involves risk),
actual performance may be lower or higher than the
performance data quoted, and investors may lose
capital.
Disclosure Statement
52
Contact Information
UNGSII Foundation
Roland Schatz
Phone: +41 79 255 36 36
Visit: http://ungsii.org
53
How to work with UNSGII Foundation
5 options to work with us:
1) Contract the UNGSII Foundation to give
access to additional data, or to have your
portfolio analyzed with the same standards.
2) Send your asset managers to the Senior
Executive Masterclass and become a certified
SDG Expert.
3) Become a partner in the Global Youth Poll –
see following pages.
4) Join the 25+5 SDG Cities Leadership
Platform – see following pages.
5) Maybe you have your own concepts and
ideas: lets have a conversation how we can
cooperate.
Interested in your company’s individual
SCR report?
54
If you want to see how your company stacks up, please
contact [email protected]
Taking the next generation seriously –
implementing the first Global Youth Poll Roland Schatz
The September 2015 agreement on Sustainable Development Goals requires all states to implement the 17 SDGs by 2030. By then, the next generation will be starting to take over from today’s leaders – but no one yet knows how the next generation is thinking about these “global goals.” Therefore, the General Director of the UN in Geneva, Michael Moller, has invited leaders from the largest youth organizations to meet at the Palais des Nations with the head of the International Parliamentary Union, the representatives of the United Indigenous Nations, experts from the World Association of Public Opinion Scholars and the Global Sustainability Index Institute Foundation to develop a feasible concept reaching out to the next generation on a regular basis to ensure that their opinion and experience become transparent and are heard by the current leaders of the world.
The Global Youth Poll, providing reliable data updated quarterly. In the time of the largest migration since World War II, it makes sense to understand what the next generation thinks about the quality of their lives in their countries, how satisfied they are with their education, their job prospects and the ability of their region to deal with environmental challenges. 70 years after the YMCA was awarded the Nobel Peace Prize for their global footprint among the next generation, they are partnering with their 60 million members with the Foundation for Global Community Health and their school program “Brain-Breaks” reaching 3 million Children in 72 countries daily. In support of the UN, the IPU and the United Indigenous Nations the Big 6 Youth organizations and the UNGSII are building on the experience of existing polls among young people in order to create a scientific database to understand what youth
55
Boys are treated better, 31%
Girls are treated better, 18%
Treated the same,
37%
Don’t Know, 5%
Refused, 9%
0% 50% 100%
Africa
Asia
Europe
Middle East
North America
South AmericaBoys aretreated better
Girls aretreated better
Treated thesame
Don’t Know
Refused
Q. Global Youth Poll: Do you think boys or girls are treated better or the same?
Taking the next generation seriously –
implementing the first Global Youth Poll Roland Schatz
across the world have in common,
and what differentiates them, across
boundaries of religion, race and
region. The survey will gauge how
satisfied they are already with the
implementation of the SDGs and
where they see room for
improvement. In order to make sure
that the opinion of the next
generation is taken serious, UN, IPU
and UIN offer that representatives of
the youth will have the opportunity to
present the results together with the
national experts from academia on
both national and international
platforms. Media Partnerships will
make sure, that the world is
permanently informed about the
results.
The deliverables:
• A publicly available question-
naire, 15 minutes long, with a
sample size of 1,000 split into 4
representative age groups: 10-14,
15-19, 20-24 and 25-29. The
sample and each sub-sample of
250 young people will be selected
according to academic standards
ensuring a solid mix of urban-
rural, diverse educational, gen-
der, religious, and wealth
backgrounds. The samples will be
partially refreshed each quarter,
ensuring the continued
representativeness of the sample
and allowing for over-time comp-
arisons of the same respondents.
• The pollsters will be trained to run
the interviews amongst their age-
groups and equipped with tablet
computers to ensure fast analysis
and aid in the collection of high
quality data. While the interviews
will only take 15 minutes, each
pollster will take another 15
minutes in order to explain the
purpose of the Global Youth Poll,
show previous results and
educate in a 1:1 situation the
value & risks of polling.
• An academic advisory board
under the leadership of Professor
Dan Cassino (FDU and AAPOR
Board Member) will supervise all
stages of the polls, including the
interpretations and presentations
of the results to the national
parliaments and others.
• UNGSII will ensure that teaching
material to empower all involved
to understand the advantages and
shortcomings of polling will
become part of the education
program
• First results presented Q1 2018
• WAPOR is accompanying the
publishing and debate amongst
the global experts on opinion
polling.
56
57
OiER and UNGSII partner with world leaders representing best
practices in ALL 17 SDGs to create a realistic implementation
by working hand-in-hand with the 25+5 City and Indigenous
Community leaders to accelerate progress already by 2025.
Supporting 25 Cities and 5 Indigenous
Communities already working to
implement the SDGs by 2025